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Tips & Guidelines On How to Launch a DAO Token

November 2020

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What is a Token-Permissioned DAO?

  • A token-permissioned DAO is a type of restricted access online community that requires the holding of a certain amount of DAO tokens in order to be part of it, or else they will be booted from the community by a bot on Telegram, Discord or Wechat.
  • The bot links with MetaMask and will boot members if they don’t hold the tokens.

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Art credit: https://nymag.com/strategist/2020/07/ethels-club-wellness.html

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What are DAO Tokens?

  • Each DAO will have their own branded community token to be part of the exclusive community, called a DAO token.
  • DAO tokens are similar to owning a country club membership. The membership can be bought to gain access to a community, and sold later at a future date when one no longer wishes to be part of it.
  • Such DAO tokens can be created for a wide variety of use cases, such as closed investor communities, exclusive trader communities, or bringing together people centered around some passion or interest.

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Karma DAO is a 417-member token-permissioned investor community that requires 200 $KARMA to be part of.

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DAOs Need Community Values

  • The most successful communities are ones that have members that care for the welfare of others.
  • Communities thrive when there’s established values, often tied to themes of inclusion, empowerment, mutual aid and collaboration.
  • Everyone needs to be part of positive, value-add communities!

A reminder that everyone wants to be part of positive-sum communities!

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Pick a Name and Brand Identity for the Community

  • DAO communities work best around a brand that the community can feel they collectively own.
  • For example, it would not always be great idea to name a DAO that elevates one person’s self-importance (e.g. John Smith DAO).
  • Ideally, the title of the DAO should reflect the vision of the DAO in some form. It can be blatantly obvious or a bit more cryptic to its members.

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Launch With a Seed Community

  • As a large part of the value of a DAO community is rooted in the DAO creator’s real life 1st degree social network.
  • When starting a DAO, one can create a seed community with 50-100 members that are a reliable reflection of the future direction of the community.
  • These first “seed” members in the DAO help craft an authentic and genuine culture for the early community, which helps attract naturally more members to join but also sets forth the values and vibe of the community.

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Value Comes From The Creator’s Network

  • Like a ripple effect in water, the DAO is seeded with the 1st degree network of the creator, but soon extends to his or her 2nd and 3rd degree network, until eventually finding a momentum on its own.
  • Eventually, the community gains a network effect, anchored by its community members and values.

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Feature Idea: Tipping

  • Karma DAO launched peer-to-peer tipping inside the community with cctip.io.
  • Tipping is a great way to turn intentions of reciprocation and appreciation into real material actions inside a community.
  • You can use your DAO token as the cryptocurrency for tipping inside your community!

Karma DAO is a 417-member token-permissioned investor community that requires 200 $KARMA to be part of.

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Feature Idea: Reward Behavior

  • It’s important that a community can reward good behavior within its members.
  • One method of rewarding positive behavior is for the DAO creator to airdrop rewards for verified actions that aid members, such as referring a job, or making a connection.
  • Creating incentives can be a powerful way to further align a community to be value-add orientated.

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Feature Idea: Create a Symbol

& City Ambassadors

  • Symbols for the DAO community can be a powerful way to unite its members. Karma DAO airdrops KARMA to members who wear a rainbow frame around their profile photo on Telegram.
  • Karma DAO also has assigned city ambassadors around the globe to help members network in-person and find filtered resources in cities across the globe.

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Create Community Activities That Add Value

  • The DAO should host events and organize activities that add value to the community.
  • Some ideas include:
    • Presentations and panels
    • NFTs giveaways
    • Swag
    • In-person meetups
    • Dealflow and investments
    • Exclusive access to digital content
    • Sharing of information, education and insights

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Being Inclusive With Community For Decisions

  • DAOs are encouraged to partake in inclusive decision making and transparency of group governance.
  • Community DAOs thrive on the concept where the whole is greater than the sum of its parts.
  • Exclusive communities can create positive-sum opportunities where everyone has something to give and gain.

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Benefits to Creating a DAO

  • One of the greatest benefits of the DAO community to the DAO creator is a hyper supportive and loyal super community.
  • This community can support the creator in a number of ways, including feedback, marketing, awareness and social media signal.
  • It is a powerful tool to have such loyal and engaged community for future experiments endeavors!

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Thank you! Contact the team with any questions or support needed.

t.me/daofi

twitter.com/daofifinance

team@daofi.finance

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